The interest rate cuts were
in response to continued weakness in the global economy with Hungary holding out
the prospect of further cuts if inflation, which is already above the bank’s
target, remains moderate.

As last week, the impact on
emerging economies from very low interest rates in the United States - flagged to remain close to zero to mid-2015 - is causing
concern.

While the Dominican Republic noted a growing flow of capital to emerging markets, Uruguay took action and
raised rates to dampen inflationary expectations before they threaten growth
prospects.

LAST WEEK'S MONETARY POLICY DECISIONS:

COUNTRY

NEW RATE

PREVIOUS RATE

RATE 1 YEAR AGO

ISRAEL

2.25%

2.25%

3.00%

HUNGARY

6.50%

6.75%

6.00%

GEORGIA

5.75%

5.75%

7.50%

ROMANIA

5.25%

5.25%

6.35%

CZECH REPUBLIC

0.25%

0.50%

0.75%

MAURITIUS

4.90%

4.90%

5.50%

SIERRA LEONE

20.00%

20.00%

23.00%

COLOMBIA

4.75%

4.75%

4.50%

TRINIDAD & TOBAGO

2.75%

3.00%

3.00%

ALBANIA

4.00%

4.00%

5.25%

DOMINICAN REPUBLIC

5.00%

5.00%

6.75%

URUGUAY

9.00%

8.75%

8.00%

NEXT WEEK: The central bank calendar next week calls for 7 central bank meetings:
Australia, Poland, Iceland, the European Central Bank (ECB), the United
Kingdom, Japan and Pakistan.

Australia and Poland may
reduce rates while the ECB and the Bank of England are not expected to change
policy. Iceland should raise rates, according to the IMF, while the Bank of
Japan is under pressure to weaken the yen. Pakistan is expected to keep rates
steady.